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Sec 269ss/t

Saif Ali (Student) (132 Points)

20 October 2014

Situation: Unsecured Loans: Opening balance Rs.120500 Cr Further Loan Taken Rs. 15000 Interest credited Rs. 6000 Amount repaid Rs. 35000 Whether to report in 269SS? What quantum of amount should be shown in 269T? Whether we need to bifercate interest portion and prinicipal portion from amount of repayment & report only principal portion in 269T.

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3 Replies

Vaibhav Jandey (Life iz Hard; I'm Harder) (1175 Points)
Replied 20 October 2014

Hi, simply put provisions of 269SS and 269T in brief if you're taking any loan or repaying any loan in excess of Rs 20,000/- then you can do so only if the payment mode is otherwise than in cash.

Interest portion is also covered here, ok.

For your reference read the following para on 269T

Section 269T : Section 269T of Income Tax Act provides that any branch of a banking company or a cooperative society, firm or other person shall not repay any loan or deposit otherwise than by an account payee cheque or account payee bank draft drawn in the name of the person, who has made the loan or deposit, if (1) The amount of the loan or deposit together with interest is Rs 20000 or more, or (2) The aggregate amount of loans or deposits held by such person, either in his own name or jointly with other person on the date of such repayment together with interest, is Rs 20000 or more.

For example if X is having loan of Rs 30000 outstanding to Y. Then X cannot repay such loan in cash to Y. -